Work Councils
Are Works Councils existing in your jurisdiction or are they even prescribed by law, and what are their rights?
England
In contrast to other EU member states, works councils are rare in the UK. At best, employers may have a staff consultation committee or forum, which is usually a fairly low-key conduit for management passing information to the workforce about the business's performance with some feedback and questions from attendees. Employees are only normally collectively represented through trade union recognition or where statute requires employee consultation, most notably in relation to collective redundancies and transfers of undertakings. Crucially, no consultative body has the power to block or even delay any actions of the employer, albeit there may be financial penalties to reflect failures to comply with specific statutory requirements. There are a number of information and consultation regimes in place in the UK:
Trade union recognition and collective bargaining, Collective Redundancies, Transfer of Undertakings, Information and Consultation of Employees Regulations 2004 (ICE), Workforce Agreements, Health and Safety, Occupational Pensions, European Works Councils, City Code on Takeovers and Mergers.
France
A works council must be set up in companies with at least 50 employees. The works council's duties are of an 'economic and professional nature'. The works council manages social and cultural activities for the employees. It must be informed and consulted on certain projects, such as transfers of undertakings or collective redundancies on economic grounds, before a management decision is made on said projects. The works council does not have a veto right, but must give an opinion on the project on which it is informed and consulted. What are the consequences of not complying with the information and consultation of the works council obligations? Criminal sanctions and damages: A "délit d'entrave" (a criminal offence known as "hindrance to employee representation rights") is sentenced by up to one year's imprisonment and/or a fine of up to €3,750. The company itself may also be sentenced to a higher fine (up to 15 times €18,750).
In addition to criminal sanctions, the works council may request, in the same action, that management and/or the company be ordered to pay damages in compensation for the lack of consultation. Court order prohibiting the implementation of the project: In a different lawsuit for a summary civil judgment, the works council can request a court order barring management from implementing the project so as long as the works council has not been properly informed and consulted.
Belgium
In principle, all businesses that normally employ on average at least 100 people must have a works council. The works council is composed of one or more employer representatives, on the one hand, and employee representatives, on the other. The number of employer representatives may not exceed the number of employee representatives. The former are appointed by the latter from amongst the company's management. The employee representatives are elected (once every four years) by the employees on the basis of candidate lists submitted by the representative unions. The main function of the works council is to act as a consultative body with an advisory role. To that end, the employer must provide it with fairly extensive financial and economic information. The main duties of the works council are to advise on all matters regarding the organization of work, working conditions and productivity; receive information from the employer regarding the company; prepare or amend the work rules; examine the general criteria used to hire and dismiss personnel; and ensure that all statutory provisions affecting the company from an employment perspective, or which relate to professional qualifications, are respected.
Portugal
A works council may be elected regardless of the number of workers in a business premises, and employees have a right to be members of a works council. Works councils can deal with a wide range of matters affecting employees in social, economic and personnel matters. Before decisions are taken regarding many of those matters, the employer must consult the works council. e.g. restructuring of the company, collective dismissals, internal regulations, changing of the work schedules, etc.
Germany
In business premises with more than 5 employees who are entitled to vote, a works council may be elected, and employees have a right to be member of a works council. Works councils can deal with a wide range of matters affecting employees in social, economic and personnel matters. In many of these matters the works council has the right of codetermination. E.g. a works council must be heard before notice of a termination of employment is given.
Ireland
Works Councils arrangements are much less common in Ireland than in other member states. Legisation is, however, in place providing for the setting up of employee information and consultation forums for EU companies over a certain size. It applies only to "community-scale undertakings" and "community-scale groups of undertakings" with at least 1,000 employees within the EU and at least 150 employees in each of least 2 member states. Legisation was also introdcued in 2006 giving employees a right to request that information and consultation arrangments be put in place in certain circumstances. Such information and consultation arrangements consist of management representatives on the one hand and employee representatives on the other hand. That legislation applies to undertakings in Ireland which employ more than 50 employees.
Spain
The collective representation of employees in companies is usually entrusted to "employee delegates" (if the company has less than 50 employees but more than 6 employees) and "works councils" (if the company has over 50 employees). Employee delegates and works councils are voluntarily elected by the employees at each worksite, the members of which may or may not also be members of a trade union. The main obligations of an employer with regard to worker representation consist in allowing and cooperating in the election of employee representatives, in providing the employee representatives with information about the company (e.g. envisaged dismissals, the employment contracts executed, the economic situation of the company, etc.) and in consulting them in some cases (e.g., collective dismissals, collective modifications of employment conditions, transfers of businesses if labour related changes are considered to have been implemented, etc.).
In addition, please note that employee representatives have, among others, the following rights: special protection in the event of a dismissal; paid time off for union activities, in accordance with the terms established in either an agreement or a convention; the right to receive the abovementioned information about the company; and the right to be consulted when legally required (e.g., among other decisions, in the events of collective dismissals).
Italy
In Italy the so called single-channel representation model prevails, whereby a body representing workers in the workplace is still formed "within" trade union organizations. In premises with more than 15 employees the legislation grants each union which has entered into a collective agreement that applies in the workplace the right to form their own representative body, called the "rappresentanza sindacale aziendale" (R.S.A.). In 1993 the social partners regulated the creation of "rappresentanza sindacale unitaria" (R.S.U.), which can be elected in premises staffed with more than 15 employees. R.S.A. and R.S.U. can coexist within the same premises but a Union which takes part in the election of an R.S.U. has to waive its rights to its own R.S.A. R.S.A. and R.S.U. represent the employees' interests in the workplace and can deal with a wide range of matters affecting employees regarding social, economic and personnel matters. R.S.A. and R.S.U. are entitled to enter into collective agreements, in recognition of their bargaining power.
The Netherlands
The Works Councils Act affords employees working in an enterprise the right, via the Works Council, to have a say in a whole range of decisions affecting the enterprise. A Works Council is a representative body elected by the employees of the enterprise from among their midst. The entrepreneur is required to establish a works council if, as a rule, at least 50 employees (including part-time employees) work in the enterprise. The Works Councils Act grants a number of special powers to the works council, such as a right of advice and a right of approval on various matters (e.g. transfer of control over the enterprise, a significant investment on behalf of the enterprise, rules regarding working conditions etc).
These pages may contain information of general interest about current legal issues, but do not give legal advice.
